Leidos Inc. awarded $75M for administrative management consulting, with a 3-bidder competition
Contract Overview
Contract Amount: $75,245,131 ($75.2M)
Contractor: Leidos, Inc.
Awarding Agency: Department of the Interior
Start Date: 2002-12-15
End Date: 2006-06-30
Contract Duration: 1,293 days
Daily Burn Rate: $58.2K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: TECHNICAL SUPPORT
Place of Performance
Location: CALIFORNIA
Plain-Language Summary
Department of the Interior obligated $75.2 million to LEIDOS, INC. for work described as: TECHNICAL SUPPORT Key points: 1. The contract value of $75.2 million for administrative management consulting services appears reasonable given the duration and scope. 2. A competitive delivery order with three bidders suggests a healthy level of market interest and potential for price discovery. 3. The firm-fixed-price contract type shifts performance risk to the contractor, Leidos, Inc. 4. This contract falls within the broad category of administrative management and general management consulting services. 5. The contract was awarded by the Department of the Interior, indicating a focus on internal operational support. 6. The duration of over 1000 days suggests a need for sustained support rather than a short-term project.
Value Assessment
Rating: good
The contract's value of approximately $75.2 million over roughly 3.5 years (1293 days) averages to about $21.7 million annually. This figure needs to be benchmarked against similar administrative management consulting contracts. However, given the firm-fixed-price nature, the government has a defined cost, and the contractor bears the risk of cost overruns. The number of bidders (3) suggests that the pricing was likely competitive, though a direct comparison to market rates for similar services would provide a more definitive assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded as a competitive delivery order, indicating that it was competed under a broader contract vehicle. The presence of three bidders suggests a reasonable level of competition for this specific order. A higher number of bidders generally leads to more robust price discovery and potentially lower prices for the government. However, three bidders still represent a competitive scenario.
Taxpayer Impact: The competitive nature of this award, with three bidders, likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario.
Public Impact
The primary beneficiaries are likely the various offices within the Department of the Interior, which will receive enhanced administrative and management support. The services delivered are focused on administrative management and general management consulting, aiming to improve the efficiency and effectiveness of departmental operations. The geographic impact is primarily within the Department of the Interior's operational areas, likely concentrated where its headquarters and major offices are located. Workforce implications may include the utilization of Leidos's specialized consultants to augment or support existing government personnel in management and administrative functions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if not managed tightly due to the long duration.
- Reliance on a single large contractor for critical administrative functions.
- Ensuring the quality and relevance of consulting services over the contract's lifespan.
Positive Signals
- Firm-fixed-price contract shifts cost risk to the contractor.
- Competitive award process suggests potential for good value.
- Contract duration allows for sustained, integrated support.
- Contractor (Leidos) is a large, established entity with significant resources.
Sector Analysis
Administrative Management and General Management Consulting Services (NAICS 541611) is a significant sector within the professional services industry. This contract represents a portion of federal spending on consulting, which is often used to improve efficiency, implement new policies, or manage complex projects. The market includes numerous large and small firms specializing in various aspects of management consulting. Benchmarking this contract's value would involve comparing its annual cost to similar engagements within federal agencies or the private sector.
Small Business Impact
The data indicates that small business participation (sb) was false and the contract was not a small business set-aside (ss). This suggests that the primary award went to a large business (Leidos, Inc.). There is no explicit information on subcontracting plans for small businesses within this specific delivery order. Without this data, it's difficult to assess the direct impact on the small business ecosystem, though large prime contracts often include subcontracting goals.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Interior. Performance reviews, regular reporting requirements, and milestone tracking are standard accountability measures. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- Management and Financial Consulting, Acquisition and Commercialization Support Services
- Professional, Scientific, and Technical Services
- Government Management Consulting Contracts
- Department of the Interior IT and Administrative Support Contracts
Risk Flags
- Long contract duration may increase risk of cost escalation or scope creep.
- Lack of explicit small business subcontracting data.
- Performance quality over extended period needs monitoring.
Tags
administrative-support, management-consulting, department-of-the-interior, leidos-inc, firm-fixed-price, competitive-delivery-order, professional-services, naics-541611, california, large-business, federal-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $75.2 million to LEIDOS, INC.. TECHNICAL SUPPORT
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of the Interior (Departmental Offices).
What is the total obligated amount?
The obligated amount is $75.2 million.
What is the period of performance?
Start: 2002-12-15. End: 2006-06-30.
What is Leidos, Inc.'s track record with the Department of the Interior and similar federal agencies for administrative consulting services?
Leidos, Inc. has a substantial history of performing contracts across various federal agencies, including the Department of the Interior. Their portfolio often includes complex IT, engineering, and professional services. For administrative management and consulting services specifically, Leidos typically leverages its broad capabilities to support agency operations, strategic planning, and process improvements. Their track record generally indicates experience with large-scale contracts and a capacity to manage significant budgets and project scopes. Specific performance metrics for this contract would be detailed in past performance reviews, which are often proprietary but influence future awards. Examining their contract history within DOI reveals numerous awards, suggesting a strong existing relationship and familiarity with the agency's needs.
How does the average annual cost of this contract compare to similar administrative consulting contracts awarded by the federal government?
The average annual cost for this contract is approximately $21.7 million ($75.2M / 3.5 years). Benchmarking this against similar federal contracts requires access to detailed data on contracts with NAICS code 541611, similar durations, and comparable agencies. Generally, large-scale administrative consulting engagements for major federal departments can range significantly, from tens of millions to hundreds of millions annually, depending on the scope, complexity, and specific services. Given that this is a competitive delivery order with a firm-fixed-price structure, the price achieved is likely reflective of market conditions at the time of award. Without direct comparative data on contracts of identical scope and duration, it's challenging to definitively state if it's high or low, but the competitive nature suggests it's within a reasonable range.
What are the primary risks associated with a firm-fixed-price contract of this duration for administrative consulting?
The primary risks associated with a firm-fixed-price (FFP) contract of this duration (over 3 years) for administrative consulting primarily fall on the contractor, Leidos, Inc. If costs escalate beyond initial projections due to unforeseen challenges, inflation, or inefficient execution, the contractor absorbs the loss. For the government, the main risk is that the fixed price might not reflect the most optimal value if market conditions change significantly or if the contractor under-delivers on quality while meeting minimum requirements. Scope creep, if not managed meticulously by the government, can also lead to disputes or requests for equitable adjustments, potentially increasing costs. Ensuring the contractor maintains motivation and quality throughout the long term, despite the FFP structure, is also a consideration.
What does the competition level (3 bidders) imply about the potential effectiveness of this contract in achieving its objectives?
A competition level of three bidders suggests a moderately healthy market response for this specific administrative consulting delivery order. It indicates that multiple firms were interested and capable of performing the required services, which generally leads to better price discovery and a higher likelihood of selecting a competent contractor. While more bidders could potentially drive prices lower, three is often considered a sufficient number to ensure meaningful competition. The effectiveness of the contract in achieving its objectives will ultimately depend on the clarity of the statement of work, the contractor's performance, and the government's oversight. The competitive award process increases the probability that the selected contractor, Leidos, Inc., is well-equipped and competitively priced to meet the Department of the Interior's needs.
How has federal spending on administrative management and general management consulting services (NAICS 541611) trended over the past five years?
Federal spending on administrative management and general management consulting services (NAICS 541611) has generally seen fluctuations but has remained a significant category within professional services spending. Post-recession periods often see increased demand for efficiency improvements, leading to higher consulting expenditures. Agencies frequently use these services for strategic planning, organizational restructuring, process optimization, and implementing new technologies or policies. While specific year-over-year trends can vary based on agency budgets, administration priorities, and economic conditions, the overall demand for these services remains consistent as agencies continually seek to improve operations and achieve mission goals within budgetary constraints. Data from sources like the Small Business Administration and FPDS can provide detailed historical spending figures.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 10260 CAMPUS POINT DR, SAN DIEGO, CA, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $110,717,795
Exercised Options: $78,428,912
Current Obligation: $75,245,131
Parent Contract
Parent Award PIID: GS23F8006H
IDV Type: FSS
Timeline
Start Date: 2002-12-15
Current End Date: 2006-06-30
Potential End Date: 2006-06-30 00:00:00
Last Modified: 2013-04-01
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